He also suggested that the Centre spend up to 1% of India s GDP for direct cash transfer to the poor to strengthen consumption at the bottom of the pyramid
Minutes of the Federal Open Markets Commission monetary policy review signalled the US central bank could reconsider its $120 billion bond purchase programme
Released liquidity may help banks to subscribe to G-Secs
May 20, 2021
Market participants offered to sell seven G-Secs aggregating ₹1,21,696 crore
Liquidity released on account of purchase of Government Securities (G-Secs/GS) aggregating ₹35,000 crore by the Reserve Bank of India (RBI) on Thursday may encourage banks to subscribe to G-Secs aggregating ₹32,000 crore at Friday’s scheduled auction.
Market participants offered to sell seven G-Secs aggregating ₹1,21,696 crore against the notified amount of ₹35,000 crore RBI wanted to buy under the second tranche of its G-sec Acquisition Programme (G-SAP 1.0).
RBI accepted offers for six G-Secs aggregating the notified amount. It rejected all the offers for 7.95 per cent GS 2032.
The Reserve Bank will conduct the second tranche of open market purchase of government securities of ₹35,000 crore under the G-sec Acquisition Programme (G-SAP 1.0) on May 20, 2021, as announced in Governor s statement of May 05, 2021. Accordingly, the Reserve Bank will purchase the Government securities through a multi-security auction using the multiple price method.
The Reserve Bank reserves the right to decide on the quantum of purchase of individual securities, accept bids for less than the aggregate amount, purchase marginally higher/lower than the aggregate amount due to rounding-off, accept or reject any or all the bids either wholly or partially without assigning any reasons.